How to get a tax ID number and register for VAT in the UK

Starting a business in the UK involves a significant amount of paperwork. Two of the most crucial steps are obtaining a tax ID number and registering for VAT if you qualify. These identifiers help you stay compliant, avoid fines, and trade with confidence—whether you’re a freelancer, small business owner or an international company expanding into Britain.

In this guide, we’ll explain what a UK tax ID is, how to get one, and the steps for VAT registration in the UK. We’ll also cover what happens after registration, plus a few tips on managing your international payments smoothly with TransferGo Business.

Tax system overview in the UK

The UK tax system is administered by HM Revenue & Customs (HMRC). Depending on your status, you’ll interact with HMRC in different ways.

• Individuals need a National Insurance number and may also be assigned a Unique Taxpayer Reference (UTR) if they file self-assessment tax returns.
• Companies receive a Corporation Tax UTR and may also need a UK VAT number if their turnover passes the VAT threshold.
• Foreigners doing business in the UK may need a tax ID for foreigners in the UK, especially if they operate as non-resident companies selling goods or services subject to VAT.

In short, having the correct UK tax identification number is the first step towards compliance.

What is a tax ID (TIN) in the UK?

The UK doesn’t issue one universal “tax ID number” like some countries. Instead, HMRC assigns different identifiers depending on who you are:

• UTR (Unique Taxpayer Reference): A 10-digit number for individuals and businesses filing tax returns.
• National Insurance number: For individuals employed or self-employed in the UK.
• Company registration number (CRN): Issued by Companies House when you register a company.
• UK VAT number: A unique ID for businesses registered for VAT.

So, when people ask “how to get a tax number in the UK,” it really depends on whether you’re an individual or a business.

What is VAT, and who needs to register?

VAT (Value Added Tax) is a consumption tax added to most goods and services sold in the UK. Businesses act as collectors on behalf of HMRC.

You must register for VAT in the UK if:

• Your VAT-taxable turnover exceeds the VAT threshold in the UK (£90,000 as of 2024).
• You expect your turnover to exceed that threshold in the next 30 days.
• You buy goods worth more than £85,000 from the EU.

Even if you’re below the threshold, voluntary registration can sometimes benefit you—for example, if you deal mostly with VAT-registered suppliers.

Applying for a tax ID in the UK

Who needs a tax ID?

• Self-employed workers and freelancers (to file their self-assessment)
• UK companies (to pay corporation tax)
• Foreign businesses operating in the UK (to pay VAT or corporation tax if applicable)

Without a valid UK tax ID, you won’t be able to file taxes or claim VAT refunds.

Documents required

To apply, you generally need:

• Proof of identity (passport, driving licence, national ID card)
• Proof of address (utility bill, tenancy agreement, bank statement)
• Business incorporation documents (for companies)
• Details of directors and business activities (if applicable)

Where and how to apply (online or in person)

• Individuals: Apply online through HMRC for a UTR via self-assessment registration
• Companies: Automatically receive a UTR when you register with Companies House
• Foreigners: Can apply online via HMRC or by appointing a UK representative

Most applications today are online, but you can still send paper forms if needed.

How long does it take to get a tax ID?

• UTRs: Around 10 days (21 if you’re abroad)
• National Insurance number: Up to 4 weeks
• Company registration + UTR: Usually 2–3 weeks

Planning ahead is essential, especially if you’ll also need to register for VAT.

VAT registration in the UK

VAT registration thresholds

The VAT threshold in the UK is £90,000. If your taxable turnover exceeds this in a rolling 12-month period, registration is mandatory.

Mandatory vs. voluntary registration

• Mandatory: Applies if you’re above the threshold, importing from the EU, or selling digital services to UK customers.
• Voluntary: Even if they sit below the threshold, some businesses choose to register to reclaim input VAT or appear more credible to suppliers and customers.

VAT application process

1. Gather your tax ID details (UTR, company info, bank details)
2. Apply online via HMRC’s VAT registration portal
3. Provide details of your business activities and turnover
4. Wait for HMRC approval and receive your UK VAT number

How to get a VAT number

Once registered, HMRC will issue you a UK VAT number—a unique 9-digit code prefixed by “GB”. You’ll need this number on invoices, VAT returns, and correspondence with HMRC.

Post-registration obligations

VAT return filing frequency

• Standard VAT returns are filed quarterly
• Some businesses may opt for annual VAT accounting

Returns are now filed through Making Tax Digital (MTD) compatible software.

Invoicing and record-keeping

• All invoices must include your VAT number
• You must keep digital records of sales, purchases, and VAT amounts
• Records should be stored for at least 6 years

Penalties for non-compliance

• Late registration: Penalties based on how much VAT you should have paid
• Late returns or payments: Interest plus financial penalties
• Incorrect records: Risk of fines and audits

Staying compliant isn’t just about avoiding penalties—it’s about building trust with partners and customers.

VAT for foreign or non-resident businesses

Do you need a local representative?

Foreign businesses can apply for VAT in the UK directly, but in some cases, HMRC may require you to appoint a UK-based tax representative.

VAT refunds and reverse charge rules

• Non-UK businesses may reclaim VAT on UK expenses through refund schemes
• Reverse charge rules apply to certain cross-border services—shifting VAT reporting obligations from supplier to customer

This ensures foreign companies don’t face double taxation.

Managing your payments with TransferGo

Sorting out your UK tax identification number and VAT registration is just the start. Once you’re up and running, you’ll be dealing with suppliers, contractors, and possibly international clients. That’s where TransferGo can help.

With a TransferGo Business Account, you can:

• Send money abroad quickly at competitive exchange rates
• Use the Batch Payments tool to pay up to 50 people at once—perfect for VAT-registered businesses paying multiple contractors
• Lock in exchange rates to protect your cash flow and maximise your profits

Whether you’re a local business or a foreign company navigating the UK VAT registration process, TransferGo makes international payments fast, affordable and stress-free.

Final thoughts

Getting a tax ID number and registering for VAT in the UK may feel like a lot of admin, but once it’s done, you’ll be able to trade with peace of mind. From understanding the VAT threshold in the UK to knowing how to register for VAT in the UK, compliance is key to long-term success.

And when it comes to handling your payments—both local and international—TransferGo has your back.

Ready to register and grow your business? Get your tax ID, secure your UK VAT number, and sign up to TransferGo to handle your global payments with ease.